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A ________ is the firm's integrated network of sourcing, production, and distribution, organized on a worldwide scale and located in countries where competitive advantage can be maximized.


A) demand chain
B) buying center
C) global supply chain
D) decision making unit

E) A) and B)
F) C) and D)

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The pattern or geographic arrangement of locations where the firm carries out value-chain activities is known as ________.


A) configuration of value-adding activity
B) internalization
C) visual merchandising
D) disintermediation

E) A) and C)
F) B) and C)

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The likelihood of a firm internalizing research and development instead of outsourcing it is low.

A) True
B) False

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Focal firms typically source from external suppliers for all of the following reasons EXCEPT ________.


A) the product or service obtained is non-core
B) the product can be purchased inexpensively
C) the supplier specializes in providing the product or service
D) the supplier offers the same product to competing firms

E) A) and D)
F) A) and C)

Correct Answer

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Which of the following is the best example of a back-office BPO activity?


A) customer service
B) billing
C) marketing
D) technical support

E) A) and B)
F) None of the above

Correct Answer

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Which of the following is a benefit of global sourcing?


A) bridging of the rich-poor divide
B) minimal reliance on suppliers
C) access to qualified personnel abroad
D) elimination of competitors

E) All of the above
F) A) and B)

Correct Answer

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The strategic view of global sourcing suggests that ________.


A) just as firms achieve gains in efficiency, productivity, quality, and revenues by leveraging offshore talent, they also obtain the means to turn around failing businesses, speed up innovation, restructure operations, and fund otherwise-unaffordable development projects
B) firms that procure supplies from foreign subsidiaries are more likely than not to lose ground to competitors who primarily bank on their own resources
C) a strong legal environment is not the prerequisite for increasing efficiencies by relocating strategic operations abroad
D) the firms' innovative activities tend to make mature products obsolete over time

E) A) and B)
F) A) and C)

Correct Answer

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